Well, it appears as though tonight is crunch night for many market watchers. There will be a reaction overnight, but it will most likely be indicative of what is to come if and when the U.S (unilaterally) or the U.N (multilaterally) announce strikes on Iraq.
I don't believe immediate military action will be taken either way. More diplomacy will be sought.
Anyway... if and when strikes are announced, will the markets rally or decline?
My view:
POG - Fall after an initial 'small' rally - and then resume its' climb to $400 in the next few days.
DJIA - Rally initially, and fall as profit takers in both the equities and currency markets take profits.
ASX - Follow the U.S - but will react to lesser 'extremes'.
A$ - Rally, and if it climbs above 60 cents resistence, it could stay there and move to 64 cents in the coming months.
US$ - Initial rally which will end when profit takers come in - at which point the dollar will continue its' downward spiral.
I do not 'want' all of the above reactions, however I believe they may eventuate.
